Non-profits and prop tax

[BrianTH]

"Entirely free from profit motive" is also potentially sticky. Obviously they don't have stockholders, but many of their employees are very well compensated, and it could be argued that if, say, you formed an umbrella group of well-compensated professionals, they shouldn't be free from paying property taxes just because the umbrella group was designed not to make a profit.

[greg42]

Originally Posted by WhoIsStanwix?

Highmark (do they even own land? I assume Fifth Ave Place is owned by a real estate group, which probably pays taxes)

I don't know about that. They somehow own both Fifth Ave Place and Penn Ave Place (former Horne's) across the street. I don't think they're owned by a for-profit subsidiary.

[WhoIsStanwix?]

A quick search of 120 5th Ave on the Allegheny Co Assessment (Address of Fifth Avenue Place) shows two properties, both identical in size, with assessements of $53.4m and $28.9m, with tax bills for 2012 of $298k and $161k, respectively. Owner is listed as "Jenkins Empire Associates".

[greg42]

Originally Posted by WhoIsStanwix?

A quick search of 120 5th Ave on the Allegheny Co Assessment (Address of Fifth Avenue Place) shows two properties, both identical in size, with assessements of $53.4m and $28.9m, with tax bills for 2012 of $298k and $161k, respectively. Owner is listed as "Jenkins Empire Associates".

Ah, well, I'm wrong about the subsidiaries after all. Jenkins Empire Associates (and also an entity JEA Inc.) is a majority-owned or wholly-owned subsidiary of Highmark. If it's paying taxes, well, that's something I guess.

Penn Ave Place (501-521 Penn Ave in the assessment web site) was sold in March 2012 for $48 million to "HTA-Penn Ave LLC" which is Healthcare Trust of America, a REIT. So Highmark actually does not own this anymore. The former owner was "Penn Avenue Place Associates" which may have been created by Highmark as the sale price is listed as $10 and the reporting when purchased was always that it was purchased by Highmark. Taxes have been paid the last few years at $164k and new bill of $192k or something I think it was (already closed it). The Jenkins purchase prices are also $0 and $1 so I would guess that was in setting up the subsidiary.

This link will download (from the state web site) a PDF that shows the PA-based subsidiaries of Highmark in early 2009, including Jenkins Empire Associates. Unfortunately I can't get the Google search BS out of it. http://www.google.com/url?sa=t&rct=j...-yZ4pxRPJGgdAw

[jimmyev]

Originally Posted by BrianTH

"Entirely free from profit motive" is also potentially sticky. Obviously they don't have stockholders, but many of their employees are very well compensated, and it could be argued that if, say, you formed an umbrella group of well-compensated professionals, they shouldn't be free from paying property taxes just because the umbrella group was designed not to make a profit.

This isn't sticky with UPMC. They spent a year-and-a-half insisting that they were competing with West Penn/Highmark. Competition is only involved in seeking profit. Since they admitted to it already, proving it should be a piece of cake.